FinCEN Form 11

Forum|Forum|2 years ago
October 25, 2023
1 reply
17 views

I have bank accounts, share investments, rental property in INDIA. What is the criteria to decide if I have to file FinCEN Form 11. When is it due?

Ask the Experts - Extension - Sept 2023

Best answer by user17581364628

"Is It a Financial Account in a Foreign Country?
Financial Accounts:
A reportable financial account includes the following:
* Bank accounts (such as savings accounts, checking accounts, and time deposits);
* Securities accounts (such as brokerage accounts and securities derivatives or other
financial instruments accounts);
* Commodity futures or options accounts;
* Insurance or annuity policies with a cash value (such as a whole life insurance policy);
* Mutual funds or similar pooled funds (such as a fund that is available to the general public
with a regular net asset value determination and regular redemptions); or
* Any other accounts maintained in a foreign financial institution or other person engaged in
the business of banking.
The following are not considered financial accounts:

* Stocks, bonds, or similar financial instruments held directly by the person;
* Real estate or an account holding solely real estate (such as Mexican "fideicomiso");
* Precious metals, precious stones, or jewels held directly by the person; or

* A safety deposit box.
− A reportable account may exist where the financial institution providing the safety deposit
box has access to the contents and can dispose of the contents upon instruction from, or
prearrangement with, the person.
CAUTION: The FBAR regulations do not require the reporting of foreign hedge funds
and private equity funds."

* Page 8 of PDF from the link above should resolve your second question.

* Assuming your rental is not in a foreign financial account, you will not report your rental property on FBAR form.

* If your stocks are held in an broker account then you will report Max value in the account for the tax year.

* Please remember this would be "...aggregate amount(s) in the foreign account(s) exceeded $10,000..."

Link. https://www.irs.gov/pub/foia/fincen-form114-fbar.pdf.

U

user17581364628

Level 5

Hi @govindapr

Assuming it is Form 114. If so, you will file:

..."FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) for each calendar year
during which the aggregate amount(s) in the foreign account(s) exceeded $10,000, valued in United States (U.S.) dollars, at any time during the calendar year. The provision also requires maintenance and retention of FBAR records for a period of five years."

Source

https://www.irs.gov/pub/foia/fincen-form114-fbar.pdf

Normally, due same time as tax filing deadline.

G

govindaprAuthor

Level 2

Hi Deep, USD 10,000 threshold - what does it include? Does it include:

Bank account balance?

Market value of the rental property?

Market value of the shares held?

U

user17581364628Answer

Level 5

"Is It a Financial Account in a Foreign Country?
Financial Accounts:
A reportable financial account includes the following:
* Bank accounts (such as savings accounts, checking accounts, and time deposits);
* Securities accounts (such as brokerage accounts and securities derivatives or other
financial instruments accounts);
* Commodity futures or options accounts;
* Insurance or annuity policies with a cash value (such as a whole life insurance policy);
* Mutual funds or similar pooled funds (such as a fund that is available to the general public
with a regular net asset value determination and regular redemptions); or
* Any other accounts maintained in a foreign financial institution or other person engaged in
the business of banking.
The following are not considered financial accounts:

* Stocks, bonds, or similar financial instruments held directly by the person;
* Real estate or an account holding solely real estate (such as Mexican "fideicomiso");
* Precious metals, precious stones, or jewels held directly by the person; or

* A safety deposit box.
− A reportable account may exist where the financial institution providing the safety deposit
box has access to the contents and can dispose of the contents upon instruction from, or
prearrangement with, the person.
CAUTION: The FBAR regulations do not require the reporting of foreign hedge funds
and private equity funds."

* Page 8 of PDF from the link above should resolve your second question.

* Assuming your rental is not in a foreign financial account, you will not report your rental property on FBAR form.

* If your stocks are held in an broker account then you will report Max value in the account for the tax year.

* Please remember this would be "...aggregate amount(s) in the foreign account(s) exceeded $10,000..."

Link. https://www.irs.gov/pub/foia/fincen-form114-fbar.pdf.